Winner-take-all markets

Question

Quizplus · Accepted Answer

Winner-take-all markets refer to situations where a small number of individuals or firms receive a disproportionate amount of rewards, often due to their exceptional performance or unique skills. CEOs of large corporations are often operating in winner-take-all markets because they are responsible for the success or failure of their company and have significant impact on the company's financial performance. Therefore, they are rewarded with high salaries and bonuses.

Answer: D
 Winner-take-all markets are often associated with the primary labor market, which includes high-paying, high-status jobs that require advanced education and skills. The secondary labor market, on the other hand, includes low-skilled, low-paying jobs with little job security or opportunities for advancement. In winner-take-all markets, those with specialized skills and education are able to secure high-paying jobs in the primary labor market, while those without these credentials are left in the secondary labor market.

A and C are incorrect because they do not accurately explain the concept of winner-take-all markets.

Winner-Take-All Markets